Frontier Communications 2007 Annual Report Download - page 16

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CITIZENS COMMUNICATIONS COMPANY AND SUBSIDIARIES
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.
ITEM 2. PROPERTIES
Our principal corporate offices are located in leased premises at 3 High Ridge Park, Stamford, Connecticut
06905.
Operations support offices are currently located in leased premises at 180 South Clinton Avenue, Rochester,
New York 14646 and at 100 CTE Drive, Dallas, Pennsylvania 18612. Call center support offices are currently
located in leased premises at 14450 Burnhaven Drive, Burnsville, Minnesota 55306 and 1398 South Woodland
Blvd., DeLand, Florida 32720. In addition, we lease and own space in our operating markets throughout the
United States.
Our telephone properties include: connecting lines between customers’ premises and the central offices;
central office switching equipment; fiber-optic and microwave radio facilities; buildings and land; and customer
premise equipment. The connecting lines, including aerial and underground cable, conduit, poles, wires and
microwave equipment, are located on public streets and highways or on privately owned land. We have
permission to use these lands pursuant to local governmental consent or lease, permit, franchise, easement or
other agreement.
ITEM 3. LEGAL PROCEEDINGS
Ronald A. Katz Technology Licensing LP, filed suit against us for patent infringement on June 8, 2007 in
the U.S. District Court for the District of Delaware. Katz Technology alleges that, by operating automated
telephone systems, including customer service systems, that allow our customers to utilize telephone calling
cards, order internet, DSL, and dial-up services, and perform a variety of account related tasks such as billing and
payments, we have infringed thirteen of Katz Technology’s patents and continue to infringe three of Katz
Technology’s patents. Katz Technology seeks unspecified damages resulting from our alleged infringement, as
well as a permanent injunction enjoining us from continuing the alleged infringement. Katz Technology
subsequently filed a tag-along notice with the Judicial Panel on Multi-District Litigation, notifying them of this
action and its relatedness to In re Katz Interactive Dial Processing Patent Litigation (MDL No. 1816), pending in
the Central District of California before Judge R. Gary Klausner. The Judicial Panel on Multi-District Litigation
has transferred the case to the Central District of California. Discovery in the case has commenced. In January
2008, we received notice of the accused services and 40 asserted claims from Katz Technology. We intend to
vigorously defend against this lawsuit.
We are party to various other legal proceedings arising in the normal course of our business. The outcome of
individual matters is not predictable. However, we believe that the ultimate resolution of all such matters, after
considering insurance coverage, will not have a material adverse effect on our financial position, results of
operations, or our cash flows.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None in fourth quarter 2007.
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